UK private companies optimistic about speed of economic recovery
04 February 2010
Optimism among UK privately held businesses (PHBs) on their economic outlook for 2010 has dramatically increased over the last year, according to the latest International Business Report (IBR) survey from finance and business advisors, Grant Thornton UK LLP.
The optimism of UK PHBs (unlisted companies including family businesses, entrepreneurial and SMEs) rose to a positive percentage balance of 16% this year.
Revenue expectations also increased in 2009 with 58% of PHBs expecting revenues to increase in 2010, compared to only 37 % that expected revenues to increase in 2009.
According to the survey of 500 PHBs, profit expectations are also buoyant. 55% of the private companies surveyed expect their profits to increase this year, in stark contrast to the 28% of PHBs last year that anticipated their profits would rise.
In preparation for the upturn, UK PHBs have put an increasing focus on the skills of their current workforce. When asked to select more than one option, 55% of respondents pointed to skills of the current workforce as the being the highest priority followed by new target markets (54%) and new products and services (46%).
David Campbell, Head of Privately Held Businesses and Regional Managing Partner says: "The increase in optimism of private companies in the UK strongly indicates belief that the turbulence in the economy is, for the most part, easing.
"Many private companies in the UK had adopted strategies to ride out the recession and are able to project forward with greater confidence. However, the risk of trading problems manifesting themselves in an upturn is just as realistic as in a downturn, so there is no room for complacency to creep back in to business practices."